Montreal, November 12, 2013.Midland Exploration Inc. (“Midland”) (TSX-V: MD) is pleased to provide an update on its various ongoing exploration activities across Quebec, including projects in partnership with Agnico Eagle Mines Limited (“Agnico Eagle”), Teck Resources Limited (“Teck”), Osisko Mining Corporation (“Osisko”), Maudore Minerals Ltd (“Maudore”) and Japan Oil, Gas and Metals National Corporation (“JOGMEC”).
To date in 2013, more than 7,500 metres were drilled, several new geophysical surveys were completed as well as prospecting, trenching and channel sampling. The results of this work have led to the discovery of new gold and platinum group elements (“PGE”) showings, outlining of several new prospective areas and identification of high-priority drill targets for 2014.
Gold projects in the Abitibi region
Patris Project – Midland/Teck (Option)
The wholly owned Patris project comprises 218 claims covering a surface area of about 90 square kilometres located less than 10 kilometres northwest of the prolific Doyon/Westwood-Bousquet-La Ronde gold mining camp. The Patris property offers excellent gold potential as it covers the Manneville Fault over more than 8 kilometres, and the La Pause Fault over more than 10 kilometres, both recognized as subsidiary faults to the famous Destor-Porcupine Fault Zone.
Under a new option agreement recently signed with Teck where Midland is the Project Manager of the initial program (see release dated September 17, 2013), prospecting, soil geochemistry and trenching were carried out on the newly identified Rosie showing, which intersected 15.5 grams per ton gold (“g/t Au”) in a grab sample, to characterize the geological setting of the showing and to prioritize induced polarization (“IP”) anomalies in preparation for an upcoming drill program. Assay results from the work recently completed in October are pending.
Maritime-Cadillac Project – Midland/Agnico Eagle JV
The Maritime-Cadillac property is located along the Larder Lake – Cadillac break and is contiguous to the Agnico Eagle’s Lapa gold mine property (2.1 million tonnes in proven and probable reserves categories at a gold grade of 6.0 g/t, for 395,000 ounces of gold), in commercial production since May 2009. The Maritime-Cadillac project is a joint-venture currently owned 51% by Agnico Eagle and 49% by Midland.
The 2013 drill campaign, totalling 2,373 metres on the Maritime-Cadillac property, included five (5) underground holes drilled from the Lapa Mine’s exploration drift 1,000 metres deep, and one (1) drill hole completed from the surface. The surface drill hole 141-13-35, aiming the Dyke West zone at a vertical depth of 600 metres, returned 1.5 g/t Au over 18.9 metres between 673.3 and 692.2 metres, including 1.85 g/t Au over 12.9 metres between 679.3 and 692.2 metres. This drill hole was completed about 300 metres below drill hole 141-10-26 which returned 8.6 g/t Au over 5.5 metres between 383.1 and 388.6 metres, including an interval of 13.8 g/t Au over 3.0 metres.
The Dyke West zone remains completely open above drill hole 141-10-26, below hole 141-13-35, and laterally below the vertical depth of 500 metres. Underground drill holes intersected anomalous gold zones with values up to 1.92 g/t Au over 1.5 metre and 1.36 g/t Au over 1.5 metre in drill hole 101-S-02. Midland Exploration is currently planning a drill program to test the extensions of the Dyke West zone in 2014.
Laflamme Project – Midland/Maudore JV
The Laflamme project comprises 715 claims covering a surface area of about 365 square kilometres. This project is currently a joint venture with Aurbec Mines Inc., a wholly-owned subsidiary of Maudore. This project is located about 25 kilometres northwest of the town of Lebel-sur-Quevillon and about 30 kilometres east of the Sleeping Giant mine and mill in Quebec.
During the 2013 summer, Midland completed several IP surveys totalling more than 40 kilometres, which led to the identification of several new drill targets along a gold trend interpreted and traced over more than 20 kilometres. This trend was identified by Midland during the winter 2013 drill campaign designed to establish the northeastward continuity of a gold discovery made in 2011 (Piccadilly showing: 9.7 g/t Au over 1.0 metre) and along the strike extensions of the Comtois North West discovery announced in June 2012, which graded 71.2 g/t Au over 1.2 metre and 0.8 g/t Au over 40.8 metres (Source: Press release by Maudore dated June 6, 2012). These holes drilled by Midland in the winter of 2013 along the prospective trend led to the discovery of new gold showings at Trafalgar (0.40 g/t Au over 5.7 metres including an interval grading 1.72 g/t Au over 1.0 metre) and Notting Hill (0.34 g/t Au over 25.56 metres including an interval grading 3.12 g/t Au over 1.5 metre). Upcoming works on Laflamme will mainly comprise diamond drilling in order to test the best geophysical targets identified along the gold trend.
Jouvex Project – 100% Midland
The Jouvex property comprises 272 claims covering a surface area of approximately 143 square kilometres along the Casa Berardi-Douay-Cameron gold-bearing deformation zone. The Jouvex property is wholly owned by Midland and is located about 50 kilometres west of Matagami in the Abitibi region of Quebec.
This property, with strong gold potential, covers over more than 10 kilometres, a prominent regional flexure along the Casa Berardi-Douay-Cameron deformation zone. This major structure hosts the Casa Berardi mine, located about 65 kilometres further west, and the Douay and Douay West deposits about 7 kilometres to the southeast of the Jouvex property. The Douay gold deposits contain 2.8 million ounces of gold as inferred resources and 238,433 ounces of gold as measured and indicated resources (Source: Aurvista Gold Corporation website).
Recently, a new helicopter-borne VTEM-type electromagnetic survey totalling about 400 kilometres, led to the identification of several new electromagnetic anomalies (“EM”) that were previously undetected by historical airborne surveys. These new EM anomalies combined with IP anomalies delineated during recent ground-based surveys in the vicinity of a historical gold showing grading 6.2 g/t Au over 1.52 metre in drill hole, represent new high-priority drill targets on the Jouvex property.
Casault Project – 100% Midland
The Casault gold property comprises 286 claims exclusively owned by Midland covering an approximate area of 157 square kilometres. The Casault property covers a portion of the Sunday Lake Fault over more than 20 kilometres strike length and is located about 40 kilometres east of the Detour Lake gold deposit, which currently hosts, near surface, 15.6 million ounces of proven and probable mineral gold reserves (National Instrument 43-101 (“NI 43-101“) compliant).
In 2012, a new high-grade gold-bearing zone was discovered near surface in drill hole CAS-12-07 with 10.4 g/t Au over 1.45 metres along the northern contact between a quartz monzodiorite intrusion and sedimentary rocks. This high-grade gold zone is within a wider strongly sericitized alteration zone anomalous in gold over more than 13.75 metres that remains open in all directions. The winter 2013 drill campaign on Casault included fourteen (14) short diamond drill holes totalling 2,992.0 metres of drilling. This program identified two new and underexplored favorable areas for gold. The first gold-prospective area is located about 5 kilometres southwest of the Martiniere West gold zone held by Balmoral Resources Ltd. Drill hole CAS-13-28A was terminated at a depth of 201.0 metres in a sheared gabbro exhibiting quartz-carbonate veins with pyrite mineralization that graded 0.29 g/t Au over 9.0 metres at the end of the hole. The second gold-prospective area was intersected by drill hole CAS-13-36 collared near the Sunday Lake Fault in the western portion of the property. This second prospective zone returned an anomalous 0.17 g/t Au over 7.5 metres from 66.5 to 74.0 metres within a shear zone with sericite alteration. These areas remain underexplored and open in all directions. Upcoming exploration work will include additional IP surveys as well as further drilling to test the extensions of these prospective zones.
Recently, due to decreasing gold price and a focus on exploring its wholly-owned properties, Osisko informed Midland of its intention to terminate the option agreement which could have allowed them to earn 50% interest in the Casault project.
During the first two years of this agreement, Osisko funded more than $3 million in exploration work on Casault, mainly in drilling. Midland has greatly benefited from working with Osisko and wishes to acknowledge its important contribution in improving the geological understanding of this property.
Gold projects in the James Bay region
Baie James Éléonore Project – 100% Midland
The Eléonore project encompasses Éléonore Centre and West properties for a combined total of 247 claims covering 128 square kilometres. These two blocks are located approximately 30 kilometres southwest from and in a geological environment similar to Goldcorp Inc.’s Éléonore deposit. This world-class gold deposit contains 3.15 million ounces of measured and indicated gold resources at an average grade of 11.92 g/t Au , and 6.25 million ounces of inferred gold resources at an average grade of 12.93 g/t Au per tonne (Source: Goldcorp press release February 17, 2010).
The 2013 prospecting program on Eleonore Centre property led to the discovery of several new gold showings. The Golden Gun East (18.8 g/t Au) and Golden Gun West (11.95 g/t Au, 2.36 g/t Au and 1.69 g/t Au) showings were respectively found 75 metres east and 200 metres west of the Golden Gun showing (13.6 g/t Au). The Aston Martin showing (1.63 g/t Au) was discovered about 1.4 kilometre south of the Golden Gun area and is associated to an EM conductor and a strong IP anomaly. A new gold showing was also discovered in the northwestern part of the IP grid at about 200 metres east from the Casino showing (0.64 g/t Au) and returned 1.58 g/t Au. Moreover, five (5) trenches were completed on the Golden Gun and Aston Martin areas. The Golden Gun West trench returned 0.44 g/t Au over 4.0 metres, including 0.91 g/t Au over 1.0 metre. Interestingly, a grab sample returning up to 11.95 g/t Au was found in a sheared conglomeratic metasediment injected of pyrite and quartz-tourmaline veinlets. Results from the Golden Gun trench returned 0.28 g/t Au over 4.0 metres, including 0.35 over 1.0 metre. On the Golden Gun South trench, heavily concentrate quartz-tourmaline veinlets were uncovered returning up to 4.78 g/t Au from a grab sample.
Marked by abundant quartz-tourmaline veinlets over several hundred square meters, these results confirm that a sizeable auriferous hydrothermal system is present on the Éléonore Centre property. Moreover, several strong IP anomalies, locally coincident with arsenic-copper-antimony soil geochem anomalies, remain unexplained.
Platinum Group Elements project (Labrador Trough – Quebec)
Pallas Project – 100% Midland
In 2013, foreseeing significant price increases for the Platinum Group Elements (“PGE”),Midland acquired 477 new claims covering more than 217 square kilometres in the Labrador Trough. This new strategic acquisition covers a large, folded, pluri-kilometric ultramafic-mafic complex known for its strong PGE exploration potential.
In only a week of field work, Midland has discovered several significant platinum, palladium and gold (“2PGE + Au”) mineralization with one returning 3.5 g/t 2PGE + Au. While prospecting farther along strike north, 5 grab samples returned 2.46, 1.54, 1.11, 0.99 and 0.77 g/t 2PGE + Au respectively. This mineralized trend has been traced over more than 250m. Farther in the Thevenet Lake area, two grab samples along a same mineralized trend and separated by 330 metres has returned 0,85 et 3,9 g/t 2PGE + Au respectively. Elsewhere, in only one stop, 3 grab samples collected within 50 metres of each other contained 2.9, 1.09 and 0.59 g/t 2PGE + Au respectively. All mineralization are concentrated in differentiated mafic gabbro containing reef-like pegmatitic gabbro horizons (characterized to be long, wide and narrow deposits). Midland is very enthusiastic by these early results and plans a follow-up exploration program for next year.
Rare Earth project (Quebec and Labrador)
Ytterby Project – Midland /JOGMEC JV
During 2013, in partnership with JOGMEC, exploration field works on the rare earth elements (“REE”) Ytterby project were limited to the Strange Lake glacial dispersal train. The property comprises more than 400 claims, covering almost entirely, some 100 square kilometers of the Strange Lake glacial dispersal train. Field works included collecting 40 new mineralized blocks and 21 surface tills samples. This work confirmed the presence and good REE grades in the boulders and tills samples over more than 30 kilometers derived from the REE likely source, the B-Zone and the Strange Lake Deposits. The B-Zone deposit currently has an indicated resource of 278,128,000 tonnes at 0.93% total rare earth oxides plus yttrium oxide (“TREO + Y2O3“), 1.92% zirconium oxide (“ZrO2“), and 0.18% niobium pentoxide (“Nb2O5“), and an inferred resource of 214,351,000 tonnes at 0.85% TREO + Y2O3, 1.71% ZrO2 and 0.14% Nb2O5; whereas the Strange Lake Deposit has an estimated resource of (not NI 43-101 compliant) 52 million tonnes at 3.25% ZrO2, 0.56% Nb2O5 and 0.66% Y2O3 and 1.3% REE. Average grade from the mineralized boulders on the Midland’s property returned 0.71% TREO+Y2O3.
Discussions with JOGMEC to plan the next exploration campaign are underway with the objective to further evaluate the economic potential to extract the mineralized boulders from the Strange Lake glacial dispersal train.
Cu-Zn project (Appalachians-Quebec)
Weedon Project – 100% Midland
From Soquem, Midland has recently acquired 100% interest in base metal rights on the Lingwick deposit located on its Weedon property. The Weedon property is located in the Ascot-Weedon felsic belt, about 120 kilometres south of Quebec City. With this new acquisition, Midland now holds all mineral rights on this deposit. Historical resources (not NI 43-101 compliant) were estimated at 350,000 tonnes grading 5.84% zinc (“Zn”), 0.61% cuivre (“Cu”), 0.14% plomb (“Pb”), and 0.35 g/t Au. The Lingwick deposit remains open down-plunge southeastward and is untested below 300 metres vertical depth. As compensation, Midland granted, subject to buyback, a 1.5% net smelter return (“NSR”) royalty to Soquem Inc.
The Weedon property comprises 242 claims covering about 125 square kilometers. It covers more than 30 kilometres of favourable stratigraphy in the Ascot-Weedon volcano-sedimentary belt which hosts several deposits, among which three former mines at Cupra-d’Estrie (Historical production: 2.43 million of tons (“Mt”) at 2.74% Cu, 3.28% Zn, 38.0 g/t silver (“Ag”),and 0.5 g/t Au), Solbec (Historical production: 2.06 Mt at 1.57% Cu, 4.57% Zn, 0.68% Pb, 48.6 g/t Ag, and 0.61 g/t Au) and Weedon (Historical production: 1.6 Mt at 2.33% Cu, 0.86% Zn, and 0.56 g/t Au).
Recent gravity and IP geophysical surveys carried out on the Weedon property have delineated a series of new drill targets strategically located along strike the respective extensions of the Lingwick, Weedon, Cupra-d’Estrie and Solbec deposits. Midland is currently seeking a new partner on this project and intends to secure a new option agreement in order to rapidly drill test these new targets.
Quality Control (“QA/QC”)
The drilling program on the Maritime-Cadillac project was operated by Agnico Eagle whereas the Casault’s drill program was operated by Osisko. The drill program on Laflamme was operated and supervised by Midland. For these three projects, selected samples were taken from NQ-size drill core sawn in two halves; one half was shipped to a commercial laboratory for analysis and the second half was kept for future reference. Quality control samples including standards and blanks were inserted in the sample stream for mineralized zones. Analyses, including those from the Patris and Éléonore Centre projects, were conducted by ALS Minerals in Val-d’Or. Drill intersections are reported as core lengths and their true thickness remains to be determined. The data were reviewed by Mario Masson, VP Midland Exploration and Qualified Person as defined by NI43-101.
The Pallas and Ytterby exploration programs were supervised by Mr. Robert Banville, senior geologist for Midland and Qualified Person as defined under NI43-101. Analyses from the Pallas project were conducted by ALS Minerals in Val d’Or and previously reported analyses for Ytterby were performed by Actlabs of Ancaster, Ontario. Both laboratories used strict internal QA/QC programs which include mineralized standards, blanks and duplicate samples.
Midland targets the excellent mineral potential of Quebec to make the discovery of new world-class deposits of gold, PGE, base metals and rare earth elements. Midland is proud to count on reputable partners such as Teck Resources Limited, Agnico Eagle Mines Limited, Maudore Minerals Limited, Japan Oil, Gas and Metals National Corporation and SOQUEM Inc. Midland prefers to work in partnership and intends to quickly conclude additional agreements in regard to newly acquired properties. Management is currently reviewing other opportunities and projects to build up the Company portfolio and generate shareholder value.
This press release was prepared by Mario Masson, VP Midland Exploration and Qualified Person as defined by NI 43-101. For further information, please consult Midland’s website or contact:
Gino Roger, President and Chief Executive Officer
Tel: 450 420-5977
Fax: 450 420-5978
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Midland’s periodic reports including the annual report or in the filings made by Midland from time to time with securities regulatory authorities